Course ID: GC-IDR02

This second session builds on the first session in that we present three (3) different scenarios to forecast indirect rates that are acceptable to DCAA. With respect to the three (3) scenarios, we will provide practical examples on “how to” develop those projected indirect rates.

LEARNING OBJECTIVES

Discuss how to project common indirect rates such as fringe, overhead and G&A

Develop skills necessary for projection of cost pools and bases using the equation of a line Y = Mx+b

Review the components of a line that are involved in forecasting: the change in Y (cost pool) over the change in X (allocation base)

Gain insights into using EXCEL graphs to view a trend line to project next year’s pool or base

Acquire confidence in working with practical indirect rate models for 3 scenarios

Scenario Even though there are sufficient historical costs, setting up an indirect rate is required for a new geographic location for both onsite and offsite – We will demonstrate how to build a projected indirect rate from scratch

Scenario Entity does not have a full-year of historical cost to predict an indirect rate – We will provide an approach to project indirect rates under this scenario